Amazon makes huge profits off of shipping rates to us

Well, well, well President Trump’s concern that Amazon is being given a rate below cost to deliver packages to us has uncovered a huge profit scheme by Amazon.

Forget about the concern that President Trump has with Amazon and focus on what has been uncovered by the Presidents’ statements. That is that Amazon is paying the United States Postal Service $1.46 less than cost per package.

The report said the average cost of parcel shipments might jump from $3.51 to $4.97 if the USPS appropriately priced the service. It also said that since the Postal Service pricing provides strong downward pressure on competitors UPS and FedEx, those companies also probably would increase prices. Amazon defended its program in July after Josh Sandbulte, a hedge fund manager with a stake in FedEx, wrote a Wall Street Journal op-ed asserting that the Postal Service effectively subsidizes Amazon, losing an average of $1.46 for each shipment it delivers.

Many in the media and punditry class are concerned about what President Trump said and their effects on Amazon. Not me, I am more concerned about what Amazon is charged by the USPS and what they charge us for shipping.